ITI COPA (Computer Operator & Programming Assistant) – Basic Notes

Topic- e-Commerce (Electronic Commerce)

1. Introduction to e-Commerce

1.1 Meaning of e-Commerce

e-Commerce (Electronic Commerce) refers to the buying and selling of goods and services over the Internet. It also includes activities such as online marketing, online payments, electronic data exchange, customer support, and supply chain management using digital technologies.

In simple words, any business transaction done using the Internet is called e-Commerce.

Examples:

Online shopping from Amazon or Flipkart
Online ticket booking
Online bill payments
Internet banking
Online food delivery

1.2 Evolution of e-Commerce

Earlier, business transactions were done physically in shops and markets. With the growth of:

Computers
Internet
Mobile devices
Digital payment systems

business shifted from traditional markets to online platforms, giving rise to e-Commerce.

1.3 Types of e-Commerce

1. Business to Consumer (B2C)

Business sells products directly to customers.
Example: Amazon, Flipkart

2. Business to Business (B2B)

Business sells products to another business.
Example: Wholesale portals

3. Consumer to Consumer (C2C)

Consumers sell to other consumers.
Example: OLX, eBay

4. Consumer to Business (C2B)

Individual provides services to businesses.
Example: Freelancing platforms

5. Government to Citizen (G2C)

Online government services.
Example: Online tax payment

2. Advantages of e-Commerce

e-Commerce has many advantages for both businesses and customers.

2.1 Advantages for Customers

Convenience
- Shop anytime (24×7)
- No need to visit physical stores
Wide Choice
- Large variety of products
- Easy comparison of prices
Time Saving
- Fast searching and ordering
- Home delivery
Better Prices
- Discounts, offers, and deals
- No middlemen
Global Access
- Products available from anywhere in the world

2.2 Advantages for Businesses

Low Operating Cost
- No physical shop required
- Reduced staff cost
Global Reach
- Customers from different countries
Faster Transactions
- Automated order processing
Better Customer Data
- Customer behavior analysis
Easy Marketing
- Digital marketing through ads and emails

2.3 Advantages for Society

Less traffic and pollution
More employment in IT and logistics
Growth of digital economy

3. Building Business on the Net

3.1 Meaning

Building business on the net means starting and running a business using Internet technologies such as websites, mobile apps, online payment systems, and digital marketing tools.

3.2 Requirements to Build Online Business

1. Product or Service

Physical goods
Digital products
Services

2. Website or Mobile App

Acts as online store
Displays products and services

3. Domain Name

Website address (e.g., www.example.com)

4. Web Hosting

Space to store website data

5. Payment Gateway

To accept online payments

6. Delivery System

Logistics and shipping partners

3.3 Steps to Build an Online Business

Business Planning
- Decide product and target customers
Website Development
- Design user-friendly website
Product Listing
- Add product details, images, and prices
Payment Integration
- Integrate payment gateway
Marketing
- SEO, social media, online ads
Customer Support
- Email, chat, and call support

3.4 Role of Digital Marketing

Digital marketing helps in:

Increasing website traffic
Attracting customers
Brand building

Common methods:

Search Engine Optimization (SEO)
Social Media Marketing
Email Marketing
Online Advertisements

4. Payment and Order Processing

4.1 Order Processing

Order processing is the complete process from order placement to delivery.

Steps involved:

Customer places order
Order confirmation
Payment processing
Packaging
Shipping
Delivery

4.2 Payment Processing

Payment processing is the method of collecting money electronically from customers.

4.3 Online Payment Methods

1. Credit Card

Most common payment method
Requires card number, expiry date, CVV

2. Debit Card

Money deducted directly from bank account

3. Net Banking

Direct bank-to-bank transfer

4. UPI (Unified Payments Interface)

Instant payment using mobile apps

5. Digital Wallets

Example: Paytm, PhonePe, Google Pay

6. Cash on Delivery (COD)

Payment at time of delivery

5. Authorization in e-Commerce

5.1 Meaning of Authorization

Authorization is the process of verifying whether the customer has sufficient funds and permission to make payment.

5.2 Authorization Process

Customer enters payment details
Payment gateway sends request to bank
Bank verifies details
Approval or rejection is sent back

5.3 Importance of Authorization

Prevents fraud
Ensures secure transactions
Protects customer and merchant

6. Chargeback in e-Commerce

6.1 Meaning of Chargeback

A chargeback occurs when a customer disputes a transaction and requests refund from the bank instead of merchant.

6.2 Reasons for Chargeback

Unauthorized transaction
Product not delivered
Wrong product
Duplicate charges
Fraud

6.3 Effects of Chargeback

Financial loss for merchant
Penalties
Damage to business reputation

6.4 Reducing Chargebacks

Proper order confirmation
Clear refund policies
Secure payment systems
Good customer service

7. Other Payment Methods

Buy Now Pay Later (BNPL)
EMI options
Gift cards
Cryptocurrency (limited use)

8. Security Issues in e-Commerce

8.1 Importance of Security

Security is very important because e-Commerce involves:

Personal data
Bank details
Payment information

8.2 Common Security Threats

1. Hacking

Unauthorized access to systems

2. Phishing

Fake websites and emails to steal data

3. Malware

Harmful software

4. Identity Theft

Stealing personal information

5. Data Breach

Leakage of customer data

8.3 Security Measures

SSL certificates
Firewalls
Encryption
Secure login systems
Regular updates

9. Payment Gateways

9.1 Meaning of Payment Gateway

A payment gateway is a service that processes online payments securely between customer, merchant, and bank.

9.2 Functions of Payment Gateway

Encrypts payment data
Authorizes transactions
Transfers funds
Provides transaction reports

9.3 Examples of Payment Gateways

Razorpay
PayU
Paytm
Stripe
CCAvenue

9.4 Advantages of Payment Gateways

Fast and secure payments
Multiple payment options
Easy integration
Fraud detection

MCQ Questions (50) – CBT Exam Pattern

1. e-Commerce stands for:

A) Electronic Communication
B) Electronic Commerce
C) Easy Commerce
D) Enterprise Commerce
Ans: B

2. Buying and selling over internet is called:

A) e-Mail
B) e-Learning
C) e-Commerce
D) e-Banking
Ans: C

3. Amazon is an example of:

A) B2B
B) B2C
C) C2B
D) G2C
Ans: B

4. C2C example is:

A) Flipkart
B) Amazon
C) OLX
D) IRCTC
Ans: C

5. Major advantage of e-Commerce is:

A) High cost
B) Limited time
C) 24×7 availability
D) No delivery
Ans: C

6. e-Commerce reduces:

A) Speed
B) Choice
C) Middlemen
D) Quality
Ans: C

7. Online business requires:

A) Internet
B) Website
C) Payment system
D) All of the above
Ans: D

8. Website address is called:

A) Hosting
B) Domain
C) Gateway
D) Server
Ans: B

9. Order processing starts when:

A) Product delivered
B) Payment received
C) Order placed
D) Refund given
Ans: C

10. Payment at delivery is called:

A) Online payment
B) Net banking
C) COD
D) EMI
Ans: C

11. UPI is used for:

A) Offline payment
B) Instant online payment
C) Cash payment
D) Credit score
Ans: B

12. Debit card money is deducted from:

A) Wallet
B) Credit account
C) Bank account
D) Merchant account
Ans: C

13. Authorization means:

A) Packing order
B) Payment verification
C) Delivery
D) Refund
Ans: B

14. Chargeback occurs when:

A) Payment successful
B) Customer disputes payment
C) Order delivered
D) Login fails
Ans: B

15. Main reason for chargeback:

A) Discount
B) Fraud
C) Marketing
D) Promotion
Ans: B

16. SSL is used for:

A) Speed
B) Security
C) Design
D) Storage
Ans: B

17. Phishing is related to:

A) Hardware
B) Fraud
C) Printing
D) Networking
Ans: B

18. Malware is:

A) Software update
B) Virus program
C) Payment gateway
D) Antivirus
Ans: B

19. Payment gateway acts as:

A) Bank
B) Security bridge
C) Website
D) Browser
Ans: B

20. Razorpay is a:

A) Browser
B) Payment gateway
C) Antivirus
D) Search engine
Ans: B

21. Encryption is used to:

A) Delete data
B) Secure data
C) Print data
D) Store data
Ans: B

22. Digital wallets store:

A) Cash
B) Payment details
C) Password
D) Products
Ans: B

23. COD stands for:

A) Cash on Demand
B) Cost on Delivery
C) Cash on Delivery
D) Credit on Delivery
Ans: C

24. BNPL means:

A) Buy Now Pay Later
B) Bank Note Payment Limit
C) Business Network Plan
D) Basic Network Plan
Ans: A

25. Order confirmation is sent after:

A) Delivery
B) Payment
C) Packing
D) Refund
Ans: B

26. Online ads are part of:

A) Accounting
B) Marketing
C) Programming
D) Security
Ans: B

27. e-Commerce increases:

A) Manual work
B) Paper use
C) Business reach
D) Delay
Ans: C

28. Identity theft means:

A) Losing ID
B) Stealing personal data
C) Changing password
D) Creating website
Ans: B

29. Firewalls protect against:

A) Virus
B) Unauthorized access
C) Power failure
D) Printer error
Ans: B

30. Online business reduces:

A) Profit
B) Customer base
C) Operating cost
D) Quality
Ans: C

31. Digital marketing uses:

A) Posters
B) TV only
C) Internet
D) Radio
Ans: C

32. EMI stands for:

A) Easy Monthly Installment
B) Equal Monthly Installment
C) Electronic Money Installment
D) Easy Money Interface
Ans: B

33. Data breach means:

A) Data backup
B) Data loss
C) Data leak
D) Data copy
Ans: C

34. Secure login uses:

A) Password
B) OTP
C) Authentication
D) All of the above
Ans: D

35. Chargebacks affect:

A) Customers only
B) Merchants only
C) Banks only
D) All parties
Ans: D

36. Hosting provides:

A) Domain name
B) Storage space
C) Payment
D) Security
Ans: B

37. Online customer support includes:

A) Chat
B) Email
C) Call
D) All of the above
Ans: D

38. e-Commerce helps self-employment by:

A) Creating online stores
B) Reducing internet
C) Removing business
D) Closing shops
Ans: A

39. Payment gateway encrypts:

A) Images
B) Payment data
C) Text only
D) Video
Ans: B

40. Secure website uses:

A) HTTP
B) FTP
C) HTTPS
D) SMTP
Ans: C

41. Global reach means:

A) Local market
B) International customers
C) City customers
D) Shop visitors
Ans: B

42. Net banking is:

A) Offline payment
B) Online bank transfer
C) Cash payment
D) Credit system
Ans: B

43. Fraud prevention improves:

A) Chargebacks
B) Security
C) Delay
D) Risk
Ans: B

44. Online shopping saves:

A) Time
B) Energy
C) Travel
D) All of the above
Ans: D

45. Payment success message comes after:

A) Delivery
B) Authorization
C) Refund
D) Logout
Ans: B

46. Business reputation is affected by:

A) Discounts
B) Chargebacks
C) Ads
D) SEO
Ans: B

47. ITI COPA students benefit from e-Commerce knowledge because:

A) Office work
B) IT jobs
C) Online business
D) All of the above
Ans: D

48. e-Commerce uses which technology most:

A) Internet
B) Radio
C) Telephone
D) Fax
Ans: A

49. Secure transactions require:

A) Antivirus
B) Encryption
C) Authentication
D) All of the above
Ans: D

50. e-Commerce is part of:

A) Digital India
B) Traditional market
C) Offline trade
D) Manual work
Ans: A

ITI (Trade-COPA) Day- 20